Cancun Ranks Last in Urban Competitiveness Index – Find Out Why!

Cancun, known as Latin America’s top tourist destination and home to Mexico’s busiest international airport, has been ranked as the least competitive of Mexico’s 20 largest cities. This is according to the Urban Competitiveness Index 2025, released by the Mexican Institute for Competitiveness (IMCO).

Despite boasting the largest annual budget among southeastern municipalities, Cancun falls behind other major urban areas such as Tijuana, Morelia, Puebla-Tlaxcala, and Mérida. The index assesses factors including safety, innovation, digital connectivity, economy, infrastructure, labor market, social and environmental aspects, law, political system, and quality of government. Cancun has shown significant shortcomings in these areas, which has negatively impacted its national competitiveness.

In contrast, Saltillo tops the list of the 20 largest cities. This is due to its low rates of homicides and vehicle theft, coupled with a high sense of safety among its residents. Saltillo also excels in labor productivity and new urban housing construction.

While Cancun ranks last in its category, other southeastern cities have demonstrated better performance. Playa del Carmen is the third most competitive city among those with a population between 250,000 and 500,000, following Los Cabos and La Paz. La Paz is notable for its high safety perception and high wages for full-time workers. Meanwhile, Chetumal ranks third among cities with fewer than 250,000 inhabitants. Guaymas leads this category, thanks to its high number of research centers relative to its economically active population, and excellent education coverage for children under 15.

Despite Cancun’s potential as a tourist hotspot, the IMCO’s findings underscore the need to address structural issues in order to improve its competitiveness. The report identifies safety, innovation, and digital connectivity as key areas for improvement. These factors are crucial for strengthening Cancun’s economy and quality of life. The report also encourages local authorities nationwide to implement public policies aimed at improving working conditions, strengthening the rule of law, and optimizing public spending. This would help transform Cancun into a more competitive and prosperous city.